BILL NUMBER: AB 1291	CHAPTERED  09/27/99

	CHAPTER   504
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 27, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 2, 1999
	PASSED THE SENATE   AUGUST 30, 1999
	AMENDED IN SENATE   AUGUST 24, 1999
	AMENDED IN SENATE   JUNE 14, 1999
	AMENDED IN ASSEMBLY   APRIL 8, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Member Corbett
   (Coauthors:  Assembly Members Alquist, Aroner, Briggs, Calderon,
Cunneen, Kuehl, Longville, Shelley, Washington, and Zettel)
   (Coauthors:  Senators Alarcon, Figueroa, Johannessen, and Solis)

                        FEBRUARY 26, 1999

   An act to amend Section 74.5 of the Revenue and Taxation Code,
relating to  seismic improvements, and making an appropriation
therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1291, Corbett.  Seismic improvements.
   (1) The California Constitution generally limits ad valorem taxes
on real property to 1% of the full cash value of that property.  For
purposes of this limitation, "full cash value" is defined as the
assessor's valuation of real property as shown on the 1975-76 tax
bill under "full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or a change in
ownership has occurred.  The California Constitution authorizes the
Legislature to exclude from "new construction" requiring reappraisal
the construction or installation in existing buildings of certain
seismic retrofitting improvements or improvements utilizing
earthquake hazard mitigation technologies.  Statutory law
implementing this authority excludes only those projects completed on
or after January 1, 1991, and before July 1, 2000.  These statutory
provisions are repealed by their own terms as of July 1, 2000.
   This bill would revise the definition of "seismic retrofitting
improvements" and would eliminate the repeal of the exclusion as of
July 1, 2000.
   By requiring local officials to administer this reappraisal
exclusion on an ongoing basis, this bill would impose a
state-mandated local program.
   (2) Under existing law, the Seismic Safety Commission is
authorized to use up to 1% of the proceeds of bonds issued and sold
pursuant to the Earthquake Safety and Public Buildings Bond Act of
1990 for specific research and development purposes.
   This bill would appropriate $145,000 from the Earthquake Safety
and Public Buildings Rehabilitation Fund of 1990 to the commission
for programs pursuant to these provisions.
  (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   (4) Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation.
   This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to the bill.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 74.5 of the Revenue and Taxation Code is
amended to read:
   74.5.  (a) For purposes of paragraph (4) of subdivision (c) of
Section 2 of Article XIIIA of the California Constitution, "newly
constructed" and "new construction" does not include seismic
retrofitting improvements and improvements utilizing earthquake
hazard mitigation technologies, to an existing building or structure.

   (b) For purposes of this section:
   (1) "Seismic retrofitting improvements" means retrofitting or
reconstruction of an existing building or structure, to abate falling
hazards from structural or nonstructural components of any building
or structure including, but not limited to, parapets, appendages,
cornices, hanging objects, and building cladding that pose serious
danger.  "Seismic retrofitting improvements" also means either
structural strengthening or providing the means necessary to reduce
seismic force levels that would otherwise be experienced by an
existing building or structure during an earthquake, so as to
significantly reduce hazards to life and safety while also providing
for the substantially safe ingress and egress of building occupants
during and immediately after an earthquake.  "Seismic retrofitting
improvements" does not include alterations, such as new plumbing,
electrical, or other added finishing materials, made in addition to
seismic-related work performed on an existing structure.  "Seismic
retrofitting" includes, but is not limited to, those items referenced
in Appendix Chapters 5 and 6 of the Uniform Code for Building
Conservation of the International Conference of Building Officials.
   (2) "Improvements utilizing earthquake hazard mitigation
technologies" means improvements to existing buildings identified by
a local government as being hazardous to life in the event of an
earthquake that utilize earthquake hazard mitigation technologies
approved by the State Architect pursuant to Section 16102 of the
Health and Safety Code.
   (c) The property owner, primary contractor, civil engineer, or
architect shall certify to the building department those portions of
the project that are seismic retrofitting improvements or
improvements utilizing earthquake hazard mitigation technologies.
Upon completion of the project, the building department shall report
the value of those portions of the project that are seismic
retrofitting improvements and improvements utilizing earthquake
hazard mitigation technologies to the county assessor.
   (d) In order to receive the exclusion, the property owner shall
notify the assessor prior to, or within 30 days of, completion of the
project that he or she intends to claim the exclusion for seismic
retrofitting improvements or improvements utilizing earthquake hazard
mitigation technologies.  The State Board of Equalization shall
prescribe the manner and form for claiming the exclusion.  All
documents necessary to support the exclusion shall be filed by the
property owner with the assessor on or before the following April 15.

   (e) The exclusion from "newly constructed" and "new construction"
under this section is not applicable to seismic safety reconstruction
and improvements that qualify for the exclusion provided in
subdivision (d) of Section 70.
   (f) This section shall only apply to projects completed on or
after January 1, 1991.
  SEC. 2.  The sum of one hundred forty-five thousand dollars
($145,000) is hereby appropriated from the Earthquake Safety and
Public Buildings Rehabilitation Fund of 1990 to the Seismic Safety
Commission for programs pursuant to subdivision (d) of Section
8878.55 of the Government Code.
  SEC. 3.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
  SEC. 4.  Notwithstanding Section 2229 of the Revenue and Taxation
Code, no appropriation is made  for purposes of Section 1 of this act
and the state shall not reimburse any local agency for any property
tax revenues lost by it pursuant to Section 1 of this act.
